EC opens infringement procedures against Cyprus, Greece and Malta

The European Commission has sent a letter to various legislators outlining how their approach to VAT is not in line with European Union law…

On 8 March 2018, the European Commission (EC) sent a letter of formal notice to Cyprus, Greece and Malta for not levying the correct amount of Value-Added Tax (VAT) on the provision of superyachts. The letter explains that the VAT issue can generate distortions of competition and highlights such schemes’ heavy involvement in the Paradise Papers leaks in 2017.

“In order to achieve fair taxation we need to take action wherever necessary to combat VAT evasion,” comments Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs union. “We cannot allow this type of favourable tax treatment granted to private boats, which also distorts competition in the maritime sector. Such practices violate EU law and must come to an end.”

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